The regulatory decision to block bond insurer Financial Guaranty Insurance Corp. from paying claims has resulted in “a failure to pay credit event” according to the International Swaps and Derivatives Association.

The credit event could trigger payments on credit default swaps covering FGIC. As of Nov. 26, there were 1,276 of such swaps outstanding, which total a net notional $1.02 billion, according to the Depository Trust & Clearing Corp., which records most insurance transactions.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.